I’m a Digital Marketing Analyst at Ogilvy & Mather Sydney office. I have recently looked at a property in Sydney, and this is an ideal one for me. I don’t want to wait another 2-3 month and save money to make an offer for this property as I might as lose the property. They have quoted a price of $740,000 and I don’t have enough savings at the moment, just $15,000. I can get a personal loan if banks accept it. I make $82,000, so I can repay it both with relative ease.

I was wondering if you know any banks which accept personal loan as my deposit?

Yes, some banks accept personal loan as a deposit if you can service both the home loan and the personal loan. But most of them do not offer home loans if you have borrowed deposit due to genuine savings requirements.

Bear in mind that you will need to meet the criteria for both a home loan and for a personal loan. So, you must have:

A high income to afford both repayments.

A clear credit history.

Little existing debt (car loans, high credit card balances, etc.)

Some savings to make up any shortfall.

A proven rental history (preferred).

Many lenders also require you to have 5% of the purchase price in genuine savings or money that you have saved yourself. If you have some savings, then we’ll have more banks to choose from and you’ll have enough money to cover other costs such as stamp duty and legal fees.

Guarantee option won’t work for me as I’m a PR (I’m from Lebanon) unless banks accept overseas properties. However, my uncle (who stays in Melbourne) can give me some money. Can you let me know how this works?

Yes, lenders don’t accept properties outside Australia as a guarantee. If they’re happy to, your parents can gift you the money for the deposit to buy a property.

Your parents can gift you the money they have in their savings account, through the sale of assets, such as a car, or an inheritance. But, getting money from overseas can be complicated.

On the other hand, lenders readily accept gifted money from your uncle. The banks usually require him to state that the money is a gift and not a loan that needs to be repaid. A gift letter that is signed by him will suffice as proof of this with most lenders.

Some lenders may also have additional requirements such as requiring the funds from the gift to be in your account before you apply.

It depends upon which lender you apply with so call us on 1300 889 743 or complete our free assessment form to speak with one of our gifted deposit specialists.